Pre-30th June Tax Minimisation Strategies

One effective strategy is to delay deriving your income until after June 30, 2018 by:

a. Delaying the Timing of the Derivation of Income until post June 30.

b. Timing of Raising Invoices for Incomplete Work (Businesses)

Where this strategy will not adversely affect your cash flow, consideration should be given to deferring the recognition of income until
after 30 June 2018. Please note, not banking amounts received before June 30 until after June 30 does not qualify because the income is
deemed to have been earned when the money is received or the goods or services are provided (depending on whether you are on a cash or
accruals basis of accounting).

Cash Basis Income - Some income is taxable on a cash receipts basis rather than on an accruals basis (e.g. rental income or interest income
in certain cases). You should consider whether some income can be deferred in those instances.

Consider delaying your invoices to customers until after July 1 – this will push the derivation of the income into the next financial year
and defer the tax payable on that income. If you operate on the cash basis of accounting you simply need to delay receiving the money from
your customers until after June 30.

Lump Sum Amounts - Where a lump sum is likely to be received close to the end of a financial year, taxpayers should consider whether this
amount (or part thereof) can be delayed or spread over future periods.

2. Bringing Forward Deductible Expenses or Losses

Prepayment of Expenses - In some circumstances, Small Business Entities (SBE) and individuals who derive passive type income (such as rental
income and dividends) should consider pre-paying expenses prior to 30 June 2018. A tax deduction can be brought forward into this financial
year for expenses like:

Employee Superannuation Payments including 9.5% Superannuation Guarantee Payments for the June 2018 quarter (that have to be received by
the Superannuation Fund by June 30, 2018 to claim a tax deduction).

Superannuation for business owners, directors and associated persons.

Wages, bonuses, commissions and allowances

Contractors

Travel and accommodation expenses

Trade creditors

Rent for July 2018 (and possibly extra months)

Insurances

Printing, stationery and office supplies

Utility expenses – telephone, electricity and power

Advertising including directory listings

Motor vehicle expenses such as registration and insurance

Subscriptions and memberships to professional associations and trade journals

Accounting fees

A deduction for prepaid expenses will generally be allowed where the payment is made before 30 June 2018 for services to be rendered within
a 12-month period. While this strategy can be effective for businesses operating on a cash basis (not accruals) basis, we never recommend
you spend money on items you don’t need. However, paying expenses in June that are due in July could save you some tax this year and
provided your cash flow permits, it makes good business sense.

Superannuation Contributions - some low or middle-income earners who make personal (after-tax) contributions to a
superannuation fund may be entitled to the government co-contribution. The amount of government co-contribution will depend on your income
and how much you contribute. (Refer to the Superannuation
Section
for more information)

Capital Gains/Losses – the timing of the sale of assets is critical and deferring the sale until after June 30 will defer
the tax exposure on the profit. Of course, if you have made other capital gains during the financial year it could be worth bringing
forward the sale and crystallizing the loss so you can offset it against the other capital gains. Note that the contract date is often the
key date for when a sale has occurred for capital gains tax purposes, not the settlement date.

Accounts Payable - If you operate on an accruals basis and services have been provided to your business, ensure that you
have an invoice dated June 30, 2018 or before so you can take up the expense in you accounts for the year ended 30th June 2018.

Disclaimer: This newsletter contains general information only. Regrettably, no responsibility can be accepted
for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not
designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to
the law as it relates to these items.

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